In its filing for bankruptcy last Friday (Dec. 13) Vector Launch (Vector), U.S. aerospace and defense company, has stated that Lockheed Martin Corp (Lockheed Martin) intends to acquire its GalacticSky-related assets for US$4.25 million while also providing a loan of US$2.5 million so that it can continue operations.
However, the bid for the satellite technology assets of Vector is subject to approval by a U.S. bankruptcy court judge so, for now, the current offer can only serve as a base offer for higher bids in a bankruptcy court auction. In the bankruptcy filing, Vector made it clear that the company’s inability to continue was as a result of its backers, Sequoia Capital’s “abrupt and unexplained withdrawal of support” earlier this year that made it impossible to raise new capital that would have allowed it to stave off bankruptcy.
A Sequoia spokesperson responded by saying that Vector had “failed to meet strategic objectives and financial projections” that it had outlined. “We ultimately made the decision to part ways with the company based on its inability to achieve its proposed plans,” was added in an emailed statement.
Launched in 2016, according to Reuters news agency, Vector raised more than US$100 million in venture capital, including from Lightspeed Venture Partners and Morgan Stanley Alternative Investment Partners. It had also won a U.S. Air Force contract for small satellite launches and had conducted a series of rocket engine tests with the U.S. Defense Advanced Research Projects Agency (DARPA).Email Post to a Friend